Narrow-moat 3M raised the lower end of its full-year adjusted earnings per share expectations, sending shares up over 6% premarket on July 26. However, net sales declined 0.5% year over year, mostly stemming from organic sales declines in the EMEA region led by weakness in 3M’s consumer segment. We maintain our fair value estimate at $89 per share.
3M’s legacy portfolio remains highly profitable and is poised to benefit from multiple secular growth trends, such as a growing global middle class and rising regulatory standards.
Multibillion-dollar pending litigation risks will cripple the value of the company and remove any benefit from potential fundamental catalysts.
|
Metric
|
MMM
|
AVY
|
KMB
|
|---|---|---|---|
Price/Earnings (Normalized) | 13.16 | 25.23 | 19.67 |
Price/Book Value | 17.84 | 7.53 | 42.07 |
Price/Sales | 2.47 | 2.01 | 2.37 |
Price/Cash Flow | 13.32 | 16.01 | 15.39 |
|
Metric
|
MMM
|
AVY
|
KMB
|
|---|---|---|---|
Quick Ratio | 0.97 | 0.50 | 0.49 |
Current Ratio | 1.36 | 0.87 | 0.85 |
Interest Coverage | 1.05 | 7.28 | 10.19 |
|
Metric
|
MMM
|
AVY
|
KMB
|
|---|---|---|---|
Return on Assets (Normalized) | 0.25% | 8.34% | 14.17% |
Return on Equity (Normalized) | 2.37% | 32.77% | 285.85% |
Return on Invested Capital (Normalized) | 3.77% | 14.14% | 28.82% |
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1-Day Chart
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